3 ms·
I came to link the exact study you provided. Here's the executive summary from the CEPR paper: "The report reviews evidence on eleven possible adjustments to m
by jljljl 13y ago
I came to link the exact study you provided. Here's the executive summary from the CEPR paper:
"The report reviews evidence on eleven possible adjustments to minimum-wage increases that may
help to explain why the measured employment effects are so consistently small. The strongest
evidence suggests that the most important channels of adjustment are: reductions in labor turnover;
improvements in organizational efficiency; reductions in wages of higher earners ("wage
compression"); and small price increases.
Given the relatively small cost to employers of modest increases in the minimum wage, these
adjustment mechanisms appear to be more than sufficient to avoid employment losses, even for
employers with a large share of low-wage workers."
Of course, it's worth noting that the first two impacts listed (reductions in labor turnover;
improvements in organizational efficiency) could themselves have an impact on new hires and hours worked.